Emma Shenton is Director and Business Change Ninja at Oakwood Management Consulting. If you need help navigating the current situation and delivering a reorganisation that delivers successful, sustainable business change book a discovery call to discuss how Oakwood can help.
With 9.4 million people furloughed and potential redundancies on the horizon, we are hearing a lot about the reorganisation. However, if you look below the surface not all re-organisational opportunities are as equal as they appear.
Here are the top three types of re-organisation you need to consider.
- The Financial Re-Organisation
This means reactive redundancies for organisations of every size for whom the pandemic and the economic impact have significantly impacted the immediate or longer term demand for the organisation’s products and services.
Many feel that they must cut deeply into their workforce now in order to keep their organisation’s afloat, in even the medium term. However what happens if there is a relatively swift return to demand?
Many companies have successfully maintained workforce numbers by moving to partial week working with significant cuts in salary at all levels. This helps ensure that everyone has a stake in the longer term future of the business and when prosperity is returned substantially, bonuses over many years can make up for the loss of income.
- The Opportunist Re-Organisation
Those who have wanted to make structural changes for some time are seizing the opportunity to push through the changes now, whilst the attention is focussed on the inevitability of large redundancies.
Be warned – this is always harder to watch as staff and their industries can see what is going on! Loyalty will be given to those organisations who do the right thing during these difficult times, rather than those going down a path of what is fast or easy. You can break your loyalty with one poorly conceived action and spend years trying to repair that damage.
This doesn’t mean that this is the wrong time to make structural changes but that transparency is king, as always, if you expect to take the residue of your people with you on the journey.
- The Pre-Emptive Re-organisation
Those who find the financial impacts of the post-pandemic downturn are uncertain, believe they should perhaps cut back or put effort into pivoting into the perceived new world. Again, I would highlight that reorganisations do not have to mean compulsory redundancies instead there are ways to retain your existing workforce and increase loyalty and productivity for the future.